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Can Zebra Technologies (ZBRA) Retain Beat Steak in Q2 Earnings?

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Zebra Technologies Corporation (ZBRA - Free Report) is scheduled to report second-quarter 2022 results on Aug 2, before market open.

ZBRA has an impressive earnings surprise history, having outperformed the Zacks Consensus Estimate in each of the preceding four quarters, the average beat being 8.8%.

Let’s see how things are shaping up for Zebra Technologies this earnings season.

Factors to Note

Robust demand for Zebra Technologies’ task management and prescriptive analytics software solutions, enterprise mobile computing, intelligent automation solutions, data capture, services and software across all regions is likely to have aided the company’s top line. For the second quarter, ZBRA anticipates adjusted net sales to grow 3-7% from the prior-year reported number.

Zebra Technologies’ acquisition of Matrox Imaging, combining its fixed industrial scanning and machine vision portfolio, is expected to have contributed to top-line growth in the second quarter.

However, ZBRA’s second-quarter performance is likely to have been hurt by supply chain challenges and high freight costs, which might have affected production capabilities. Given the company’s international exposure, foreign-currency-related headwinds, might have impacted its overseas business performance in the to-be-reported quarter.

What the Zacks Model Unveils

The proven Zacks model predicts an earnings beat for Zebra Technologies this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of beating estimates. You can see the complete list of today’s Zacks #1 Rank stocks here.

Earnings ESP: Zebra Technologies has an Earnings ESP of +2.15% as the Most Accurate Estimate is pegged at $4.28, higher than the Zacks Consensus Estimate of $4.19. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Zebra Technologies carries a Zacks Rank #3.

Highlights of Q1 Earnings

Zebra Technologies’ first-quarter 2022 adjusted earnings per share of $4.01 outpaced the Zacks Consensus Estimate of $3.83. However, the bottom line decreased 16.3% on a year-over-year basis. Net sales of $1,432 million surpassed the Zacks Consensus Estimate of $1,374 million and improved 6.3% year over year, driven by 5.4% increase in organic sales, 1% contribution from acquisitions. Adverse foreign currency movements impacted the top line by 0.1%.

Other Stocks to Consider

Here are some other companies within the broader Industrial Products sector that you may want to consider, as according to our model, these too have the right combination of elements to beat on earnings this reporting cycle.

A. O. Smith Corporation (AOS - Free Report) has an Earnings ESP of +0.62% and a Zacks Rank #3. The company is scheduled to release second-quarter earnings numbers on Jul 28.

A. O. Smith’s earnings surpassed the Zacks Consensus Estimate in each of the preceding four quarters, the average beat being 12.6%.

Eaton Corporation (ETN - Free Report) has an Earnings ESP of +0.04% and a Zacks Rank #3. The company is set to release second-quarter financial numbers on Aug 2.

Eaton’s earnings trumped the Zacks Consensus Estimate in each of the trailing four quarters, the average beat being 3.5%.

MRC Global (MRC - Free Report) has an Earnings ESP of +30.27% and a Zacks Rank #1. The company is set to release second-quarter 2022 results on Aug 8.

MRC Global’s earnings have outperformed the Zacks Consensus Estimate in three of the trailing four quarters, while meeting estimates in one. The average beat was 140.8%.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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